Which of the Following Statements Relating to Required Stable Funding

question 7

Multiple Choice

Which of the following statements relating to required stable funding is true?

• A)The required stable funding (RSF) is found by subtracting the value of assets held and funded by the FI, multiplied by a specific RSF factor assigned to specific asset types.
• B)The RSF is found by adding the value of assets held and funded by the FI, multiplied by a specific RSF factor assigned to specific asset types.
• C)Assets that are more liquid receive a higher RSF factor.
• D)The RSF amount is determined by the liquidity characteristics of the FI's various on-balance-sheet contingent exposures.

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Definitions:

Cognitive Appraisal

The process of evaluating a situation or event for its significance to personal wellbeing, influencing emotional and behavioral responses.

Lazarus Theory

A concept in psychology that suggests emotions are a result of thought processes, and stress arises from an appraisal of a situation that impacts one's well-being.

Emotional Reactions

Responses that involve affective components such as feelings, moods, and attitudes triggered by stimuli or events.

Display Rules

Cultural rules that dictate how emotions should generally be expressed and when and where their expression is appropriate.